The arm's length price is determined using the comparable uncontrolled price, cost plus and resale price methods and transactional profit methods. The appropriate method is chosen according to the nature of the transaction and the availability of comparable data.
Source: Corporate Tax Law No. 5520 Art. 13
Related terms
Transfer pricingThe pricing of goods, services and financing transactions between related persons; tax legislation requires these prices to be at arm's length.Disguised profit distributionTransferring corporate profits to shareholders or related persons outside the tax base through transactions with related persons at prices or amounts that are not at arm's length.Advance taxTax paid in advance during the year by income and corporate taxpayers, in quarterly periods, on current-period earnings.Capital gainGains of individuals from disposing of certain assets and rights that are subject to income tax.Certified public accountant (SMMM)A professional authorised to keep taxpayers' books, prepare their financial statements and advise on accounting and tax matters.Corporate income taxThe tax levied on the earnings of capital companies, cooperatives and other corporate entities.
Last updated: October 22, 2026 · This definition is for general information only.